An Empirical Study on the Relationship between Board Characteristics and Corporate Performance

• Main Authors: Chia-Shun Lin, 林家舜
• Other Authors: Hsiang-Lan Chen
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/76910311185528612081

碩士 === 國立高雄第一科技大學 === 財務管理所 === 98 === Recently, there are more and more famous companies hollow out their assets internally and externally, resulting in the issue to enhance Corporate Governance. To improve such a crisis, Corporate Governance is a preventive implement that is generally regarded as the solution. The Board of Directors and Supervisors has become the main issue when talking about Corporate Governance. It is urgent to strengthen the functions of Board in Taiwan. In this research, the samples are all the companies in the Taiwan Stock Exchange Corporate (TSEC) and Over-the-Counter market (OTC) from 2003 to 2008, and financial industry is excluded. We would like to discuss the relationship between the corporate performance (EPS and PBR) and the Board Characteristics through descriptive statistics and OLS regression analysis. The independent variables including the size of the board, the shareholding structure, the percentage of shares pledged, the percentage of the Board of Independent Directors and Supervisors and the controlling shareholder Supervise Order of seats control power.Our empirical results show that: 1. The size of the Board of Directors and Supervisors is significantly negatively associated with corporate performance. 2. The shareholding structure of the Board of Directors and Supervisors is significantly positively associated with corporate performance. 3. The percentage of shareholding pledged by the Board of Directors and Supervisors is significantly negatively associated with corporate performance. 4. The percentage of the Board of Independent Directors and Supervisors is significantly positively associated with corporate performance. 5. The percentage of the controlling shareholder Supervise Order of seats control power is significantly negatively associated with corporate performance.